Among the city/s economic development objectives is the creation of 100 new jobs each fiscal year. This article discusses how the city did that during the last budget cycle.

Lompoc enjoys one of the healthiest and most diversified economies on the Central Coast. To further diversify the local economy, the city has focused on value-added agriculture and entrepreneurship. The local flower seed industry evolved into research and development, which includes higher skilled/higher paying jobs than traditional agriculture. Now less productive land is giving way to well-suited wine grapes, which also require higher-skilled labor and pay higher wages for winegrowing.

The city works to grow a prestigious wine industry and to promote Lompoc as a wine destination. In five years we have grown from five to 30 labels produced in 14 wineries across the city, as well as opened five tasting rooms and a wine shop. We have also attracted the largest wine event in the county, the Santa Barbara County Vintners/ Festival, and branded Lompoc Valley as the &#8220Gateway to the Santa Rita Hills Wine Country.C

Reference USA data suggests that the 30 boutique wineries in Lompoc have created more than 100 jobs, and each winery generates, on average, from ,500,000 to ,5 million in annual sales, depending on the winery size. Combined with Lompoc area wineries, such as Babcock, Sanford and Foley, which are closer to ,25 million to ,50 million in annual sales, winegrowing has emerged as a new economic engine driving entrepreneurship in our area.

The wine industry creates new employment opportunities in Lompoc Valley, from winemakers, cellar staff and tasting room hosts to vineyard managers and crew. As Lompoc/s boutique wineries grow, they move into larger space and hire more employees. Secondary and tertiary benefits are also created as these wineries support other local service businesses, such as wine fulfillment, equipment rental, construction, legal, accounting, banking, and restaurants.

Located in Lompoc/s &#8220Wine Ghetto,C Presidio Winery provides a de facto incubator or custom-crush facility that has fostered winemakers who do not have the capital for their own equipment. Camaraderie among the residents of the &#8220Wine GhettoC has allowed the boutique wineries to grow. Thus, Lompoc wineries illustrate local innovation, sharing marketing, equipment, facilities and technical expertise to reduce costs.

A few years ago, Lompoc/s wine production spilled out of the &#8220Wine GhettoC over to West Central Avenue, where Ken Brown Wines, Ampelos Cellars, Pali Wine Company, the Loring Wine Company, P2 Wine and Cargasacchi Vineyards found a home. New production facilities have recently been completed for the Pali Wine Company and the Loring Wine Company on Aviation Drive. Sea Smoke Cellars has proposed construction of a facility on North O Street. Rosario Perry has also proposed a multi-tenant production facility for North L Street.

Winegrowing brings direct and indirect benefits to Lompoc Valley. The launching of the prestigious Sta. Rita Hills American Viticultural Area brought immediate cachet to the community. Corporate direct investment in the area, such as Kathy Joseph/s partnership with Napa-based Beringer Blass Wine Estates in Fiddlestix Vineyard, brings new capital to the area.

Over the past couple of years, Napa-based Premier Pacific has purchased more than 4,000 acres in the Lompoc area, much of which is in the Sta. Rita Hills appellation. Premier Pacific continues to invest in planting pinot noir and chardonnay vineyards where it is viable. To give some perspective to the investment, local estimated costs for planting and irrigation are ,25,000 to ,35,000 per acre, excluding the cost of land.

Vineyards prove to be more sustainable than row crops, which are easily switched out from year to year, because they require at least a 25-year commitment. The Lompoc district wine grape planting is estimated to be more than 2,500 acres and new acreage is planted every month. Vineyard manager Bill Henri points out that &#8220The wine industry is sexy and attracts investors with deep pockets who will pay more for the land and cattle than they are worth!C

Lompoc Valley has also attracted a significant infusion of international capital over the past five years. In 2005, Chicago-based Terlato Wines International purchased majority ownership of Sanford Winery on Santa Rosa Road. Terlato, a leading marketer of luxury wines around the world, brings intnational savvy in wine marketing to the area. During the same year, Lompoc-based Celite Corporation diatomaceous earth mine was purchased by Imerys, a French industrial minerals and pigments company. Many Celite employees are local residents.

In 2003, Swedish-owned Fagerdala World Foams purchased Lompoc-based Pactuco to manufacture polymer foam products used for insulation, packaging and decoration, as well as thermoformed packaging and injection molded products used in the toy, food and electronics retail market. The company retained a number of the former Pactuco employees and has a seasonally adjusted workforce of 60 to 93 employees.

The city also attracted multinational corporation Raytheon Vision Systems to the community in 2003. RVS employs 30 workers who develop and manufacture infrared sensors for scientific, commercial and government applications. RVS contributes to the economic vitality of our community by providing high-paid jobs.

The city attracted new jobs with national retailers over the past five years, including Walgreens; Home Depot; Ross Dress for Less; Petco; Pier 1; and California Dodge, Chrysler, Jeep. Michaels will soon open and two retail locations that have been dark for years due to long-term leases, Office Max and the eastside Vons, will soon house In Shape Health Club and an indoor market. Other local retailers, such as Cindy/s Sweet Creations, have opened storefronts and are growing national business. Several restaurants have also opened in the past few years, including Jalama Beach Café, with about 25 employees.

While the closure of Lompoc/s Ford dealership is unfortunate, it reflects a corporate decision to close about 600 dealerships across the country rather than anything negative about Lompoc.

The Bedfords of Sunset Auto and other Lompoc employers, including Wayne/s Tires, immediately absorbed most of the 30 Ford employees.

The city also stimulated local competition in broadband technologies by launching the Lompoc Broadband Feasibility Study in 2002. City residents now have at least three competitors offering high-speed data options to choose from, as well as new employment opportunities within those organizations.

The broadband initiative also seeks to inspire local entrepreneurs to develop e-commerce business models and Web-based strategies for innovating new business and maximizing existing business operations.

A recent article in the Lompoc Record, &#8220Vintegrated Solutions brings wine to massesC illustrates one Lompoc-based company where &#8220about 90 percent of the sales are completed online or by e-mail. …C Many wineries also rely on Internet sales for the majority of their business. In particular, Sea Smoke Cellars uses radio frequency ID for inventory control in its vineyards and winery. Lompoc welcomes clean and green technology-based businesses.

To diminish the number of commuters that leave Lompoc every day, the city supports all types of entrepreneurship. Toward that end, the city launched the Self-Employment Training Course with instructor Tim Harrington in 2003. Since the first workshop, 45 individuals representing businesses from sole proprietors to corporations have attended the course.

Businesses currently operating in the Lompoc Valley that have attended the SET course include Amy/s Village Frame Shop, Cards by Kathy G, Global Vision Computing, Fin-Up Racing Suspension, Knightlighting, Solutions for People, and Animal Care Hospital.

City economic development resources are used to promote the course and provide scholarships to low-to-moderate income participants. The next course will be offerd this winter.

The city also partners with the U.S. Small Business Development Center to contract with the Chamber of Commerce for Harrington to provide free small-business development services.

At least 100 new jobs created in the wine industry, retail sector, and entrepreneurial class illustrate that the city met its objective for job creation during the last budget cycle.

Be sure to read the final article next week to learn how the city met its second objective, to continue to update and implement an economic development marketing campaign to attract new businesses.

Editor/s note: This is the second of three weekly articles by city Economic Development Manager Kate Griffith about the state of economic development in Lompoc, which has come under recent criticism.

Lompoc Economic Development Manager Kate Griffith can be reached at 875-8232, or at k_griffith@ci.lompoc.ca.us.

October 23, 2007